As mentioned earlier, lawyers usually advance money to finance the costs of litigation. These expenses may be small – several hundred dollars in worker’s compensation cases to hundreds of thousands of dollars in certain medical malpractice cases and products liability cases. Our law firm almost always advances these expenses to its clients and does not charge interest or any other fees.
In the event we win the case, we are repaid from the money we recover for the client. Expenses are deducted after the fee is calculated. Some law firms require the client to pay the expenses or require the client to pay the first several thousand dollars toward these expenses.
There is nothing wrong with a lawyer asking for a payment toward expenses, and the client simply must decide whether to employ a lawyer who makes such a request or hire a lawyer who will advance these expenses for the client. Other law firms borrow money for the client and pay the expenses, and then charge the interest and fees ... more.
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